The development of the digital yuan has stepped into a new phase when recently the first Digital Yuan insurance policy was issued in Shenzhen. Shenzhen subsidiary Ping An Property & Casualty Insurance together with the Bank of China branch in Shenzhen has issued the first batch of Digital Yuan Covid-19 insurance.
According to a recent Global Times report, the move to issue a Digital Yuan insurance policy is a simulation to see the use of the Digital Yuan in the implementation process. This information was revealed by one of the assistant lecturers at the Gaoling School of Artificial Intelligence at Renmin University of China, Wang Peng.
According to Wang Peng, the issuance of insurance is to encourage consumers to use Digital Yuan in a broader implementation framework. Previously, Digital Yuan has been usable for e-commerce and online payments.
Add Wang, more and more consumers are accustomed to making payments with digital yuan and the market begins to mature so the use of Digital Yuan can be expanded in a broader framework such as financial services to trading in securities.
The recently released insurance policy is a pioneering application of the Digital Yuan insurance sector for online premium payments. The insurance policy targets medical workers in Shenzhen’s Nanshan district, and provides 300,000 Yuan, which is equivalent to $ 46,221 in death coverage as a result of COVID-19.
